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The refinery is burning "offgas" or lighter components such as methane, ethane, propane, and butane that are trapped in the crude oil as it enters the refinery. Many refineries today use these components as fuel for heaters and other processes and/or sell these gaseous products in the form of LPG. This requires a large centrifugal compressor which is a very high capitol cost, which is why some refineries still burn the gas in flares.

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Q: Why does fire come out the top of oil pipelines?
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